Gym Management

You're sitting in your 9-to-5, thinking about the BJJ gym you want to open. Or you've already opened one and can't figure out when you'll be able to pay yourself a real gym owner salary.

They say "gym owners make good money," but do the numbers ever add up?

You've seen revenue projections that look great on paper—200 members × $150/month = $30k/month!

But somehow that doesn't translate to BJJ gym owner income. The rent is $6k. Instructor payroll is $8k. Insurance, processing fees, marketing, software... and suddenly you're wondering if you can pay yourself at all.

This article shows you the real math behind BJJ gym owner income. 

You'll see three specific scenarios (startup/side hustle, full-time operator, and scaled academy) with actual numbers, not vague ranges.

You'll learn the member math that determines your gym owner salary, the cost structure most owners underestimate, and the clear path to $100k+ take-home.

The fitness industry is massive—55,294 health clubs and studios operate in the United States, generating a $22.4 billion economic impact. But what does that mean for you as a BJJ academy owner?

Let's break down the real numbers behind how much gym owners actually make.

Understanding BJJ Gym Owner Income: Revenue vs Take-Home Pay

The first mistake most prospective BJJ gym owners make is confusing revenue with income—a fundamental misunderstanding of gym financial management that can doom your business before it starts.

When someone tells you "my gym does $30k a month," that's gross revenue—not what they take home.

Revenue is not income. Revenue is every dollar that comes in the door.

Income is what's left after you've paid rent, instructors, insurance, processing fees, utilities, marketing, and every other expense that keeps the lights on.

Three ways gym owners get paid

How you actually get paid looks like this:

1. W-2 salary: You put yourself on payroll like any employee, subject to employment taxes and withholding.
2. Owner draw/distributions: If you're an LLC or S-corp, you take money out as pass-through income.
3. SDE (Seller's Discretionary Earnings): This is the most complete picture of owner benefit: net profit + your salary + discretionary expenses you could eliminate.

That last one might be confusing, so let’s get into it.

What is SDE (Seller's Discretionary Earnings)?

SDE (Seller's Discretionary Earnings) is the most complete measure of gym owner income. 

It includes net profit + owner salary + discretionary expenses (vehicle, phone, etc.) that run through the business.

For gym owners, SDE is the total financial benefit you receive from owning the business, not just your salary.

SDE Formula:

• Business net profit
• Plus: Owner salary/compensation
• Plus: Discretionary expenses
• Equals: Total owner benefit (SDE)

SDE is what matters most when evaluating if a gym can support you.

When you see gym sale listings or industry reports, they're talking about SDE. It includes everything you take home—your salary, business profit, and discretionary expenses (vehicle, phone) that run through the business.

Key financial definitions every BJJ gym owner needs:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization): The standard business profitability metric that shows operating performance.
• SDE (Seller's Discretionary Earnings): EBITDA + owner compensation + discretionary add-backs; most relevant for small gyms.
• Net margin: What percentage of revenue is left after ALL expenses, including owner pay.

Understanding the 23.6% benchmark

According to Health & Fitness Association's 2025 benchmarking data, fitness facilities achieve a median EBITDA margin of 23.6%. That's your profitability target.

If you're running a $20,000/month gym, aim for about $4,720 in EBITDA. That's just business profit.

But here's where it gets interesting. 

If you're also paying yourself a $60,000 salary, your total owner benefit (SDE) is $9,720/month. That's $116,640/year.

This distinction matters because most BJJ gym owners wear multiple hats. You're the instructor (labor), the manager (overhead), and the owner (capital).

Your true "take-home" includes compensation for all three roles—understanding time management for gym owners becomes critical to maximizing that value.

What BJJ Gym Owners Actually Take Home: 3 Scenarios

Your income as a BJJ gym owner varies dramatically based on member count, staffing model, and location.

Here are three realistic scenarios based on industry benchmarks (23.6% EBITDA margin, 66.4% retention rate, typical BJJ pricing of $150-$180/month).

Scenario 1: Startup/side hustle gym (50-75 members)

Your profile: You teach all classes, rent a small space (1,000-1,500 sq ft), and run this alongside another job.

You're coaching 10-15 hours per week and spend another 5-10 hours on admin, marketing, and member management.

Monthly P&L:

Annual owner take-home: ~$57,744

Reality check: This works as a side hustle but won't replace a full-time job.

You're trading your time (teaching 10-15 hours/week plus admin) for income. The margin looks great at 50% because you're providing all the labor yourself—you're paying yourself $40-$50/hour for your coaching time.

The challenge: This model isn't scalable until you hit 100+ members through strategic growth. You're capped by how many classes you can personally teach while maintaining a day job.

Scenario 2: Full-time operator (120-150 members)

Your profile: This is your full-time business.

You teach most classes (15-20 hours/week), handle all management and business development, and have 1-2 part-time instructors to cover the schedule.

Monthly P&L:

Annual owner take-home: ~$163,284

Reality check: This is where BJJ gym ownership becomes a viable career replacement.

You're still teaching most classes (trading time for margin), but you have enough members to cover all costs and pay yourself a solid gym owner salary.

Here's a better breakdown of that $163,284 annual owner benefit:

• Owner salary/draw: $90,000/year (what you actually pay yourself)
• Business profit (EBITDA): $73,284/year (33% margin - above industry benchmark)
• Total owner benefit (SDE): $163,284

This model gives you a six-figure income, but you're still very hands-on. You're the business.

If you take a week off, you need coverage or classes don't happen—which is why many owners at this stage explore hiring gym instructors to buy back their time.

Scenario 3: Scaled academy (225-250 members)

Your profile: You have 2-3 full-time instructors handling most classes.

You focus on management, business development, and strategic planning. You teach 5-8 hours/week to stay connected to the mats and maintain culture.

Monthly P&L:

Annual owner take-home: ~$179,112

Reality check: Higher gross revenue, but margins compress because you've replaced your own labor (free) with payroll (expensive).

You gain time freedom but pay for it in reduced margin percentage—a classic trade-off.

Here's how that breaks down:

• Owner salary: $80,000/year (conservative - you could pay yourself more)
• Business profit (EBITDA): $99,112/year (24.3% margin - right at industry benchmark)
• Total owner benefit (SDE): $179,112

This is the classic business owner's dilemma. You're making more total dollars than Scenario 2 ($179k vs $163k), but your margin percentage is lower (37% vs 61%).

You've bought yourself time freedom—you're on the mats 5-8 hours instead of 20+ hours—but you're paying three full-time salaries to make it happen.

Many owners get stuck here. Great BJJ gym owner income, but can't grow further without adding a second location or dramatically increasing prices.

BJJ Gym Owner Income by Member Count

Key insight: Owner income increases with member count, but margin percentage can decrease as you hire more staff.

The key insight across all scenarios

Your BJJ gym owner income increases with member count, but margin percentage can actually decrease as you staff up.

The sweet spot for most solo operators is 120-180 members—enough revenue to pay yourself well ($90k-$140k), not so many that you need expensive full-time staff.

At 180 members paying $165/month, you're generating $29,700 in monthly revenue. With minimal part-time instructor support, you can keep expenses around $10,000-$12,000 and take home $17,000-$19,000 per month ($204k-$228k annually) while still teaching most classes.

That's the founder-coach model at peak efficiency.

Beyond that, you're making a deliberate choice: hire staff and trade margin for time, or stay lean and keep the cash flow.

How Many Members Does A BJJ Gym Need To Break Even And Support Owner Salary?

This is the question that determines your BJJ gym owner income potential and whether your dream is viable or a financial trap.

Break-even isn't just "covering rent"—it's covering all costs AND paying yourself enough to justify the work.

How to calculate break-even members for your BJJ gym

Follow these steps to figure out how many members you need to be even-steven with cash flow:

Step 1: Add up all fixed monthly costs (rent, insurance, software, utilities, marketing)

Step 2: Calculate variable cost per member (payment processing fees, marginal instructor costs)

Step 3: Determine your ARPM (average revenue per member)

Step 4: Use this formula:

Break-Even Members = Fixed Monthly Costs ÷ (ARPM - Variable Cost per Member)

Step 5: Add your target owner salary to fixed costs for "true" break-even

Example: $4,250 fixed costs + $5,000 owner salary = $9,250 ÷ ($160 ARPM - $12.80 variable) = 63 members needed

Let's break down what goes into each part.

Understanding fixed vs variable costs

At its simplest, fixed costs stay the same and variable costs shift with the times. Let’s see some examples.

Fixed costs (don't change with member count):

• Rent: $2,500-$6,000/month depending on market
• Insurance: $300-$800/month
• Software: $150-$400/month
• Utilities (base): $200-$500/month
• Marketing (base): $500-$1,500/month

These hit you whether you have 10 members or 200 members.

Variable costs (increase with each member):

• Payment processing: ~3% of ARPM ($4.50-$5.40 per member at $150-$180 ARPM)
• Instructor payroll (if you staff heavy): $15-$40 per member per month
• Marginal utilities: ~$2-5 per member

Variable costs grow with your member count, but they're usually small compared to fixed costs in the early stages.

Example calculation: Small gym, founder-coach model

Now, let’s take a gander at what this may look like for a smaller gym.

Fixed costs:

• Rent: $2,800
• Insurance: $350
• Software: $200
• Utilities: $300
• Marketing: $600
• Total fixed: $4,250/month

Variable costs per member:

• Processing (3% of $160 ARPM): $4.80
• Minimal instructor coverage: $8
• Total variable: $12.80/member

ARPM (Average Revenue Per Member): $160

Break-even calculation:

$4,250 ÷ ($160 - $12.80) = 28.9 members

You need 29 members to cover all costs (not pay yourself yet).

Adding your salary to the equation

Breaking even on expenses is nice, but you need to eat. That’s where your calories come from.

Let's say you want to pay yourself a gym owner salary of $60k/year ($5k/month). Now the equation looks like:

($4,250 + $5,000) ÷ ($160 - $12.80) = 62.8 members

You need 63 members to pay yourself $60k annually.

That's the real break-even number. Less than 63 members, and you're either losing money or working for free.

Sensitivity analysis: What if rent increases 20%?

Your landlord raises rent from $2,800 to $3,360. Oof, that’s a hit. Suddenly:

• New fixed costs: $4,810
• New break-even with $5k owner pay: 66.6 members

A 20% rent increase requires four more members just to maintain the same take-home.

This is why location choice and lease negotiation matter more than most owners realize. You can't market your way out of a rent problem.

What changes when you add instructors?

Let's say you hire a full-time instructor at $3,500/month to replace 60% of your teaching (15 hours/week). 

This frees up your time, but changes the economics.

If you have 87 members, the $3,500 instructor cost equals about $40 per member per month ($3,500 ÷ 87).

Now your variable costs jump from $12.80/member to $52.80/member.

Your break-even with $5k owner pay becomes:

($4,250 + $5,000) ÷ ($160 - $52.80) = 86.3 members

You need 87 members (vs 63 without the instructor) to maintain the same $5k/month take-home.

The trade-off: You gain 15 hours/week of personal time, but you need 24 more paying members to keep the same income.

Is that worth it? Depends on what you do with those 15 hours—if you use them to grow the business through marketing, yes. If you just get more sleep, maybe not.

Interactive break-even calculator

This interactive calculator will allow you to input:

• Monthly rent
• Insurance, software, utilities, marketing costs
• Target ARPM
• Instructor payroll
• Desired owner salary

Output: Break-even member count, monthly revenue required, margin analysis

The math here is simple, but the implications are profound.

If you're looking at a space that costs $6,000/month in rent and you plan to charge $150/month for membership, you need a lot more members than the guy who found a $2,500 space and charges $180/month—which is why understanding gym pricing strategies is necessary.

Payment processing fees are part of this equation too—at 3%, they're eating $4.80 of every $160 membership.

Using efficient payment processing and reducing failed payment rates can directly impact your break-even member count.

Systems like Gymdesk's automated billing save 5+ hours per week on billing tasks and reduce involuntary churn through automated dunning and failed payment recovery. 

If you're losing 3-4 members per month to payment failures and you need 63 members to break even, you're constantly recruiting just to stay flat.

Automated payment recovery means those members stay on the roster instead of churning involuntarily.

Real BJJ Gym Expenses: Rent, Insurance, And Payroll Breakdown

Most prospective BJJ gym owners underestimate three things that directly affect gym owner income: rent variability, total insurance costs, and how fast payroll compresses margins.

Let's break down each category with real numbers.

1. Rent: The expense that varies 10x by location

Rent isn't just "find a space and pay the lease." It's the single biggest determinant of whether your gym is viable.

Location pricing (per square foot per month):

• Urban core (NYC, SF, LA, Chicago): $8-$15/sq ft
• Suburban (most mid-size cities): $2-$5/sq ft
• Rural/secondary markets: $1-$3/sq ft

For a typical 1,500 sq ft BJJ gym (one mat area plus changing rooms):

• Urban: $12,000-$22,500/month
• Suburban: $3,000-$7,500/month
• Rural: $1,500-$4,500/month

Hidden rent costs most owners miss:

• CAM fees (Common Area Maintenance): Additional charges for parking lot maintenance, common area costs, and property management—typically add 10-30% to base rent (varies significantly by property type and landlord; always request detailed breakdown)
• Tenant improvements: $20-$80/sq ft upfront for build-out (mats, changing rooms, bathrooms, HVAC upgrades)
• Lease deposits: First month + last month + security deposit = 3-4 months rent due at signing

Why this matters: If your rent is $5,000/month and you're at 60 members paying $160/month ($9,600 revenue), your rent is 52% of gross revenue. Industry standard is 10-15%.

You're underwater before you even get to payroll.

At 60 members, you need rent closer to $1,000-$1,500 to maintain healthy margins. Or you need to grow to 150+ members before that $5,000 rent makes sense (it would be 15% of $33,000 monthly revenue).

Location strategy: Many successful BJJ gym owners start in industrial areas or office parks with below-market rent ($1.50-$3/sq ft), then move to premium locations once they hit 150+ members and can afford $4-$6/sq ft.

2. Insurance: $3,400-$10,500 annually (and not optional)

BJJ is physical and things happen, so you need coverage so things don’t get dicey later.

Required coverage for a BJJ gym:

• General liability: $1,200-$3,000/year (covers slip-and-fall, property damage, basic injury claims)
• Professional liability (for instruction): $600-$2,000/year (covers claims that your instruction caused injury)
• Property insurance: $400-$1,500/year (covers your mats, equipment, build-out improvements)
• Workers' comp (if you have W-2 staff): $1,200-$4,000/year (required by law in most states for employees)

Total annual insurance cost: $3,400-$10,500 ($280-$875/month)

Note: Smaller gyms without employees may pay as little as $850-$1,500/year for basic general and professional liability coverage. Costs increase significantly with gym size, employee count, and higher coverage limits.

Many new gym owners skip professional liability to save $50-$100/month and regret it when a student gets injured during a technique and claims improper instruction.

Don't be that person. Budget for full coverage—understanding proper gym insurance protects both your business and your BJJ gym owner income.

Gym owner tip: Bundle policies with a martial arts-specific insurance provider (like K&K Insurance or Philadelphia Insurance) instead of using a general business insurer. You'll get better rates and coverage that actually understands grappling injury risk.

3. Instructor payroll: 35-45% of gross revenue (staffed model)

This is where most gym owners' growth plans die. Payroll grows fast.

Common pay models:

• Hourly: $25-$60/hour depending on market and instructor experience (NYC pays $50-$60, smaller markets $25-$40)
• Per-student: $5-$10 per student per class (incentivizes instructor recruitment)
• Salary: $35,000-$55,000/year for full-time lead instructors

Example staffing costs:

Part-time coverage (1-2 instructors, 10-15 hours/week total):

• Cost: $1,000-$3,000/month
• Covers: Evening classes when you can't be there, weekend open mats
• Viable at: 80-120 members

Full-time instructor (one instructor, 20-25 hours/week):

• Cost: $3,500-$4,500/month
• Covers: Half your class schedule
• Viable at: 140-180 members

Fully staffed (2-3 full-time instructors):

• Cost: $10,000-$15,000/month
• Covers: You barely teach, focus on management
• Viable at: 220-280 members

The founder-coach trap

When you teach all classes yourself, your "cost" is $0 on the P&L. But you're trading time at an implied rate of $40-$80/hour.

At 150 members generating $24,000/month in revenue, you might be teaching 20 hours/week. If you hired someone to replace those hours at $50/hour, that's $4,000-$4,300/month in payroll.

Your P&L shows 55-60% margin because your instructor cost is zero. 

But you're personally working 30-35 hours/week (20 teaching + 10-15 admin)—the typical work hours for gym owners in founder-coach mode.

Your actual hourly rate as an owner is $13,000-$14,000 owner income ÷ 140 hours = $93-$100/hour.

That's great if you want to work 30-35 hours/week.

But if you want time freedom, you need to replace your labor with payroll.

The math: Hiring a full-time instructor at $4,000/month to replace your 20 teaching hours means you need to grow from 150 to 180 members just to maintain the same take-home income.

That's the price of buying back your time.

Most owners hit 120-150 members, realize they're making $120k-$160k in gym owner income, and decide to stay founder-coach instead of staffing up.

It's a choice, not a failure—but you need to understand the trade-off.

4. Payment processing: 3-4% of revenue (plus fixed fees)

Little costs add up. That’s never been more true than with payment processing fees. Each transaction, they get a little cut.

Typical processing costs:

• Interchange + processor markup: 2.9% + $0.30 per transaction (Stripe/Square standard)
• Monthly volume at 150 members × $160 ARPM: $24,000
• Processing fees: $24,000 × 0.03 + ($0.30 × 150 transactions) = $720 + $45 = $765/month
• Annual cost: $9,180

Most new owners budget $200-$300/month for processing and are shocked when the actual bill is $700-$900.

At $24k monthly volume, you're paying nearly $10k/year just to collect money.

Why this matters: Processing fees are why ARPM (average revenue per member) matters so much.

If you're charging $120/month instead of $160/month, your processing fee per member is only $3.60 vs $4.80—but you're losing $40/month in revenue. The $3.60 savings costs you $35.20 in top-line income.

5. Other operating expenses: 15-20% of revenue

The "everything else" category includes:

• Marketing: $500-$2,500/month (effective gym advertising strategies that actually work)
• Software: $150-$400/month (gym management, billing, CRM, website hosting)
• Utilities: $300-$800/month (HVAC is expensive when you're cooling/heating a 1,500 sq ft space with bodies generating heat)
• Maintenance: $200-$500/month (mat cleaning, equipment replacement, general repairs)
• Accounting/legal: $200-$600/month (bookkeeping, tax prep, occasional legal advice)

These add up fast. At 150 members with $24,000 monthly revenue, you're spending $3,000-$4,800/month on "other stuff."

Total cost structure example (150-member gym at $24,000/month revenue):

That's $167,160 in annual owner benefit—solid full-time income for a business you built.

If you're spending too much time on admin and billing instead of coaching or growing, it might be time to change your martial arts software to something more automated.

The Path To $100k+ BJJ Gym Owner Income

You don't want to guess if your BJJ gym owner income will hit $100k "someday."

You want a model where $100k+ is a predictable outcome, not a lucky year. Here's what it actually takes.

Pick your model: Founder-coach vs staffed operator

There are two paths to six figures in BJJ gym ownership, and they require very different member counts.

Founder-coach model (you teach most classes):

• Member target: 130-170 members
• ARPM target: $160-$180
• Monthly revenue: $20,800-$30,600
• Owner income at 55-60% margin: $11,440-$18,360/month = $137k-$220k/year
• Time commitment: 15-25 hours/week teaching + 10-15 hours management = 25-40 hours total
• Pros: Highest margins, full control, strong community connection, you are the culture
• Cons: Time-for-money trade, hard to grow beyond one location, burnout risk

Staffed operator model (2-3 instructors, you manage):

• Member target: 200-280 members
• ARPM target: $165-$175
• Monthly revenue: $33,000-$49,000
• Owner income at 30-35% margin: $9,900-$17,150/month = $119k-$206k/year
• Time commitment: 5-10 hours/week teaching + 15-20 hours management = 20-30 hours total
• Pros: Time freedom, can grow to multiple locations, can take vacations without closing
• Cons: Lower margin percentage, payroll risk (staff turnover), harder to maintain culture

Which model hits $100k faster?

Founder-coach hits $100k at 105-110 members (assuming 58% margin, $165 ARPM).

Math: 105 members × $165 = $17,325 monthly revenue Owner income at 58% margin = $10,048/month = $120,576/year

Staffed operator hits $100k at 180-200 members (assuming 32% margin, $170 ARPM).

Math: 185 members × $170 = $31,450 monthly revenue Owner income at 32% margin = $10,064/month = $120,768/year

Path of least resistance: Start founder-coach, hit $100k at 105-110 members, then decide:

• Want higher income? Stay lean, grow to 150-170 members, make $150k-$220k
• Want time freedom? Hire staff, grow to 200-250 members, make $120k-$180k but work 20 hours instead of 35

Both paths work. They target different outcomes.

For more on growing to even higher income levels, see our guide on how to make a million-dollar salary as a gym owner—it's possible, but requires multi-location strategy or premium positioning.

Improve retention before you chase growth

Most gym owners obsess over new member acquisition when retention is leaking revenue out the back door.

Retention beats acquisition for take-home pay, as we’ll demonstrate.

If you have 150 members and:

• Scenario A: 5% monthly churn (7.5 members lost) = You need 7-8 new members/month just to stay flat
• Scenario B: 3% monthly churn (4.5 members lost) = You need 4-5 new members/month to stay flat

Impact: Reducing churn from 5% to 3% means you can grow 50% faster with the same marketing spend.

That's the difference between hitting $100k in Year 3 vs Year 2.

Industry data shows fitness facilities retain 66.4% of members annually, implying roughly 2.9% monthly churn.

If you're running 5-6% churn, you're bleeding members at twice the industry rate.

The retention levers that matter most in BJJ:

1. First 90 days: 60% of all churn happens in the first three months.

Members quit because they feel lost, don't see progress, or don't bond with the community.

What works:

• Structured beginner curriculum (clear path from Day 1 to first stripe)
• Buddy system (pair new members with experienced students)
• 30-day check-in (personal conversation: "How's it going? What's confusing?")
• Goal-setting session (what do you want to achieve in 6 months?)

2. Billing reliability: Payment failures cause 15-25% of total churn.

Cards expire, checking accounts run low, autofill fails—and members don't come back because they're embarrassed.

Industry studies of subscription businesses show automated payment recovery (dunning) strategies recovering 50-80% of failed payments, which can significantly reduce involuntary churn for gyms. 

That translates to meaningfully lower total churn just by catching failed payments and retrying them before the member ghosts.

Systems like Gymdesk's automated billing features handle billing reminders automatically, send payment method update requests without manual emails, and manage failed payment recovery through dunning sequences. 

This maintains member relationships without awkward "your card declined" conversations.

Specialized CRM systems for martial arts schools handle these member communication touchpoints automatically, reducing admin burden while improving retention.

3. Community touchpoints: Regular non-training events give members reasons to stay that aren't just "I should train more."

Examples:

• Monthly belt promotions (ceremony builds commitment)
• Quarterly open mats (social environment, less formal)
• Visiting instructor seminars (novelty, learning, social proof)
• Team competition prep (shared goal bonds people)

Members who participate in community events outside of regular training show significantly higher retention rates. 

These touchpoints build emotional connection to the gym beyond just physical training, creating additional reasons to stay active even when training motivation dips.

Add high-margin revenue without bloated operations

Once you've nailed retention, adding revenue per member is the next lever.

The goal: increase ARPM without adding operational complexity.

What works (ranked by ROI):

1. Private lessons: $80-$150/hour, zero additional overhead, pure margin contribution

If you add 15 private lessons per month at $100/hour, that's $1,500 in almost pure profit. Over a year, that's $18,000 in additional owner income for 15 hours/month of work you already know how to do.

2. Small group training: 4-8 person "competition team" or "advanced techniques class" at $99-$199/month premium

You can run one 90-minute session per week and charge $149/month for access. At 12 members, that's $1,788/month in additional revenue ($21,456/year) for 6 hours of work per month.

3. Seminars with visiting instructors: $50-$100/student, 20-40 students = $1,000-$4,000 gross per event

You typically split revenue 50/50 or 60/40 with the visiting instructor. Even at a 50/50 split, a $2,000 gross event puts $1,000 in your pocket for one Saturday.

Run four per year and that's $4,000 in found money.

4. Merchandise: Gis, rashguards, gym-branded apparel (10-30% margin but requires inventory)

Margins are thin and you tie up cash in inventory, but it's a convenience for members and reinforces brand. Budget $2,000-$5,000 for initial inventory, expect 15-20% margin on sales.

5. Online coaching: Technique breakdowns, competition prep videos, remote training

This works well but takes significant time to build content. Better as a Year 3-5 project after your in-person model is dialed in.

What to avoid

You don’t have to do everything, just to get a little more revenue. Some things aren’t worth the trouble unless you just love them.

• Kids birthday parties. Time-intensive, low margin, pulls you away from core BJJ programming.
• Retail equipment sales. Thin margins (5-10%), inventory risk, Amazon undercuts you at every pass.
• Unrelated services. Adding yoga or personal training dilutes your BJJ brand and adds operational complexity.

Stick to what you're already good at: teaching jiu-jitsu.

Build a simple monthly scorecard

You don't need a 47-metric dashboard. You need seven numbers you check on the 1st of every month.

Track these monthly, not daily. Trends matter more than single data points.

Gym management systems (like Gymdesk) provide dashboards showing member count, revenue trends, churn rates, and profitability reports in one view. 

You don't need to manually calculate "what's my churn rate this month?" from spreadsheets—the reporting features update automatically in real-time.

For help increasing visibility and member acquisition through your website, check out how we help with SEO performance for gyms.

Why Your BJJ Gym Profit Margins May Be Lower Than Expected

Even with good member count and solid pricing, your BJJ gym profit margins might disappoint you.

Here are the five mistakes that shrink profitability.

1. Confusing revenue with take-home pay

"200 members × $150 = $30k/month = $360k/year!"

Reality: That's gross revenue.

After rent ($5k), payroll ($12k), insurance ($600), processing ($900), marketing ($1,500), software ($350), and utilities ($800), you're netting $8,850/month = $106,200/year.

Still good income, but 70% less than the revenue number you were celebrating. Revenue is a vanity metric. Owner income (SDE) is what matters.

2. Ignoring involuntary churn

You budget for 5% voluntary churn (people who quit intentionally because they're moving, injured, or bored).

What you miss: 2-3% involuntary churn from failed payments, expired cards, and "I forgot to update my payment method" situations.

Combined churn: 7-8% instead of 5%

Impact: At 150 members with 8% monthly churn, you're losing 12 members per month.

You need to sign up 12-13 new members just to stay flat. At 5% churn, you'd only lose 7-8 members and your marketing dollars would go 50% further toward growth.

The difference between 5% and 8% churn is the difference between hitting $100k owner income in Year 2 vs Year 4.

3. Underpricing membership

"I want to be affordable for my community" is noble but financially unsustainable.

If your market can support $160-$180/month but you're charging $120 because you feel guilty, you need 33% more members to hit the same owner income.

Math:

• $100k owner income at $120 ARPM = need 195 members
• $100k owner income at $160 ARPM = need 146 members

That's 49 additional members you have to recruit, onboard, and retain just because you underpriced by $40/month.

Most students gladly pay $160-$180 for quality BJJ instruction. If they can't afford it, offer a work-study program (they clean mats for discounted tuition).

Don't systematically underprice your entire membership base.

4. Relying on "more classes" instead of better economics

Adding evening classes or weekend open mats won't fix a broken financial model.

If your rent-to-revenue ratio is 25% (should be 10-15%), adding more class times just increases your labor hours without improving the underlying problem.

The actual fixes:

• Renegotiate rent or move to a cheaper space
• Increase pricing to improve revenue per member
• Improve retention to reduce the "recruit just to stay flat" treadmill
• Cut unnecessary expenses (that $400/month software you never use)

"More classes" feels productive, but it's often busywork that avoids the hard conversations (raising prices, changing locations, cutting expenses).

Grant from Alma Fight Gym learned this the hard way as he was building his Tokyo school. 

Not only does it increase labor time, but it also means trying to manage mostly empty rooms, putting the spotlight on your new students (which they usually hate). 

5. Paying yourself last with no plan

Many gym owners treat their salary as "whatever's left over" instead of building it into the model from Day 1.

This leads to years of underearning and eventual burnout. You can't run a business on hope and leftover cash.

Better approach:

1. Decide your target salary ($60k? $100k? $150k?)
2. Calculate the member count needed at your target ARPM
3. Build a cost structure that supports that member count
4. Pay yourself first (set salary or monthly draw), then manage expenses within what's left

If you can't pay yourself the target salary, you either need more members, higher pricing, lower costs, or all three.

But don't just "hope it works out eventually."

Treat your compensation as a fixed cost, not a variable one. The business exists to pay you, not the other way around.

Building A Profitable BJJ Gym That Pays You Predictably

Most prospective BJJ gym owners ask "how much can I make?" when they should be asking "what model makes BJJ gym owner income predictable?"

The difference between $40k/year (barely surviving) and $120k/year (thriving) isn't luck, location, or marketing genius.

It's understanding the math behind BJJ gym profit:

• Break-even member count based on your actual fixed costs (not optimistic projections)
• ARPM that reflects your market's willingness to pay and your value delivery
• Retention rate that keeps you growing instead of churning through members
• Cost structure that leaves room for you to actually get paid (not just cover expenses)

The three scenarios in this article aren't aspirational projections. They're grounded in industry benchmarks (23.6% EBITDA margin, 66.4% retention rate) and real member economics that reflect typical BJJ pricing and operations.

Pick the model that fits your lifestyle goals:

• Founder-coach: Highest margins, most time commitment, $100k at 105-110 members 
• Staffed operator: More time freedom, lower margins, $100k at 180-200 members 
• Side hustle: Low risk, supplemental income, $40-60k at 50-75 members

Whichever path you choose, your journey to $100k+ isn't about "better marketing" or "working harder."

It's about building a financial model where your labor, your overhead, and your member economics all point toward predictable BJJ gym owner income—not aspirational hope.

The math works if you work the math.

Start by calculating your actual break-even member count (use the formula in this article). Then track the 7 monthly metrics that determine profitability.

And most importantly: pay yourself first, with a plan, not from whatever's left over.

Tools like Gymdesk help you execute this model efficiently—tracking members, automating billing, recovering failed payments, and showing profitability in real-time.

But the foundation is understanding the economics first, then using software to make those economics more reliable.

If you're ready to see how Gymdesk can help you build a more profitable, predictable BJJ gym, start a free trial and see the difference automated billing and member management makes for your bottom line.